Core Insights - Asure Software reported a GAAP net loss per share of $(0.22) for Q2 2025, missing the positive earnings estimate of $0.14 per share, despite improvements in underlying recurring revenue and adjusted EBITDA [1][2] - The company raised its full-year revenue guidance due to growth in key product lines and the acquisition of Lathem Time, indicating solid progress in strategic initiatives [1][14] Financial Performance - Q2 2025 revenue was $30.1 million, below the estimate of $31.03 million, with a year-over-year increase of 7% [2][5] - Adjusted EBITDA rose to $5.2 million from $4.1 million in Q2 2024, reflecting a 26.8% increase [2][5] - Recurring revenue reached $28.6 million, accounting for 95% of total revenue, and increased by 6% year-over-year [6][2] Business Overview - Asure Software provides cloud-based human capital management (HCM) and payroll solutions primarily to small and mid-sized businesses in the U.S. [3] - The company focuses on payroll processing, compliance, and related software services, distributed through direct sales and partnerships [3] Strategic Focus - Recent strategies emphasize innovation through product development and automation, including the use of robotic process automation (RPA) and artificial intelligence (AI) [4] - The company aims to grow recurring software subscription revenues and improve product adoption rates among existing customers [4] Recent Developments - The acquisition of Lathem Time, a time and attendance tracking solutions provider, is expected to enhance Asure's scale and recurring revenue base, although its impact will be seen in future quarters [7][14] - The Payroll Tax Management product line was a significant growth driver, supported by increased attach rates and cross-selling efforts [6][10] Outlook - Management increased the full-year 2025 revenue guidance to $138.0–$142.0 million, up from $134.0–$138.0 million, with Q3 2025 revenue projected at $35.0–$37.0 million [14] - Adjusted EBITDA for Q3 2025 is expected to improve to $7.0–$9.0 million, targeting an adjusted EBITDA margin of 22–24% for fiscal 2025 [14]

Financial Performance & Growth - Total revenues for 2024 reached $119.8 million, with a 17% increase excluding one-time ERTC revenue compared to 2023 [10] - Recurring revenues grew by 15% compared to 2023, now representing 96% of total revenues, up from 84% the previous year [10] - Bookings grew 86% in 2024 [12] - Revenue guidance for FY2025 is projected to be between $134 million and $138 million [12] - Adjusted EBITDA margin guidance for FY2025 is estimated at 23%-24% [12] Client & Employee Metrics - The company serves over 100,000 clients [12] - The company serves over 2 million employees [12] - The company has money movement of $10 billion+ [12] - Net client retention is at 93% LTM (Last Twelve Months) [12] Market Opportunity & Strategy - The U S HCM TAM (Total Addressable Market) is growing at a 7.6% CAGR (Compound Annual Growth Rate) through 2025, reaching $90 billion+ [27] - Approximately 50% of the U S HCM market consists of businesses with fewer than 1000 employees [27] - The company aims for ~20% revenue growth through a long-term growth model [76]